OPEC+ goes with another big supply hike – ING

By: bitcoin ethereum news|2025/05/06 20:15:01
0
Share
copy
OPEC+ is implementing another aggressive supply hike. Effective in June, this increase solidifies a shift in policy. With prospects of further large supply increases in the months ahead, we revised our oil forecasts lower, ING’s commodity expert Warren Patterson notes. Saudis may have to cut spending and/or tap debt markets “The Saudis are the driving force behind larger-than-scheduled supply increases to punish members who’ve repeatedly produced above their targets. OPEC+ surprised the market back in April with a supply increase of 411k b/d for May, above the scheduled increase of 135k b/d. This past weekend, the group decided to go with a similarly aggressive supply increase for June.” “Originally, OPEC+ was meant to bring back 2.2m b/d of supply over an 18-month period, running through to September 2026. However, in three months, the group has decided to bring back almost 1m b/d of supply. The oil market has been dealing with significant demand uncertainty amid tariff risks. This change in OPEC+ policy adds to uncertainty on the supply side. Adding to the uncertainty: the group will decide on output levels month by month. OPEC+ will decide July output levels on 1 June.” “The key to knowing how far the Saudis will take what is starting to look like a price war is the nation’s tolerance for low oil prices over time. The Saudis need around US$90/bbl to balance their fiscal budget, quite a distance above current prices. Saudi Arabia will be able to lower its fiscal breakeven level by pumping more. Obviously, this also depends on how much lower prices trade amid increased supply. The widening gap between their fiscal breakeven level and current oil prices means that the Saudis will have to cut spending and/or tap debt markets.” Source: https://www.fxstreet.com/news/opec-goes-with-another-big-supply-hike-ing-202505060941

You may also like

Mining Exodus: Someone Holds $12.8 Billion AI Order

Mining Farms are Turning to AI Hashpower with no Turning Back.

March 6 Market Key Intelligence, How Much Did You Miss?

1. On-chain Funds: $16.3M USD has flowed into the OP Mainnet today; $13.7M USD has flowed out of Arbitrum 2. Largest Price Swings: $XPT, $AIX 3. Top News: Vitalik Calls on Ethereum Community to Shift Mindset, Uphold Core Principles, and Rethink Application Design "From Scratch"

a16z: The True Opportunity of Stablecoins is in Complementing, Not Disrupting

The stablecoin opportunity lies with those merchants yet to come onboard.

Predict LALIGA Matches, Shoot Daily & Win BTC, USDT and WXT on WEEX

The WEEX × LALIGA campaign brought together football excitement and crypto participation through a dynamic interactive experience. During the event, users predicted matches, completed trading tasks, and took daily shots to compete for rewards including BTC, USDT, WXT, and exclusive prizes.

Ray Dalio Dialogue: Why I'm Betting on Gold and Not Bitcoin

Gold is the only asset with a long-term history that can be transferred, is not easily replicable, and does not rely on anyone else's promise. Most currencies, debts, stocks, etc., are just promises of someone honoring their purchasing power.

Who Took the Money in the AI Era? A Must-See Investment Checklist for HALO Asset Trading

A one-page paper listed a series of questions about the potential impact of AI progress. Looking back over two years later, these questions appear particularly prescient, although none of them provided a definitive answer at the time.

Popular coins

Latest Crypto News

Read more